Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 2 July 2018 to Question 157736, whether people using childcare vouchers are able to use that voucher scheme alongside (a) the childcare element to working tax credit and (b) universal credit.

Parents cannot claim Universal Credit or tax credits for the same childcare they are using childcare vouchers to fund. However, if a Universal Credit or tax credit claimant requires more childcare than their vouchers pay for, they can claim any additional amounts through Universal Credit or tax credits, provided they meet the eligibility conditions and can provide evidence of payments.

The government has increased the support for working parents on Universal Credit who can now get up to 85% of their childcare costs paid. Parents on tax credits get up to 70% of their childcare costs paid. This means the majority of Universal Credit and tax credits claimants are better off getting help through these schemes than through the childcare voucher scheme.

Many Universal Credit and tax credits claimants aren’t able to get childcare vouchers as the majority of schemes are run through salary sacrifice. You cannot salary sacrifice below the National Minimum Wage so those claimants earning close to this level aren’t able to get childcare vouchers.